Oireachtas Joint and Select Committees
Wednesday, 7 May 2014
Joint Oireachtas Committee on Transport and Communications
School Transport Scheme: Bus Éireann
3:25 pm
Mr. Gerry Gannon:
I will take the question on the savings and efficiencies first. Between 2008 and 2012 the cost of the school transport scheme to the Department of Education and Skills was reduced by €12.5 million off the bottom line from €162.2 million to €149.47 million which in itself is not insignificant. There was more than €30 million worth of savings in the same period. Those savings were achieved through the re-organisation of the network, the retendering of existing services and the renegotiation of rates. Another way in which the saving was achieved was that Bus Éireann provided a rebate to the Department of Education and Skills of €10.5 million. I can provide details of the €30 million.
The reason the €30 million does not reduce off the bottom line by itself is because of the additionality that is introduced to the school transport system every year in terms of sanctions for new services and improvements to services which amount to more than €6 million per year. In that five-year period, 2008 to 2012, it was more than €25 million worth of additionality. In simple terms, the re-organisation of services saves the money that paid for the additional sanctions but because the savings exceeded the cost of the sanctions, the actual cost of the school transport scheme was reduced, hence the bottom line reduction of €12.5 million.